Additional RM400m can be collected from companies exploiting the system: IRB

KUALA LUMPUR: Several Multinational companies in Malaysia could be evading taxes amounting to hundreds of millions of ringgit, the Inland Revenue Board (IRB) revealed today.
According to IRB chief executive Datuk Sabin Samitah, an additional RM400 million can be collected from companies being investigated by the department's Aggressive Tax Planning Division.
"The Aggressive Tax Planning Department that was formed earlier this year is currently investigating several multinationals. They have determined that up to RM400 million in additional taxes can be collected from these companies," Sabin told the press at the Seri Pacific Hotel today.
Aggressive tax planning refers to the practice of exploiting legal loopholes or disguising business transactions to reduce taxes beyond the amount of which one is obliged to pay.
The names or the number of companies were not made known, but IRB announced earlier this year that it will be coming down hard on tax evasion, especially on multinationals.
Meanwhile, Sabin said Uber or Grabcar drivers are required to declare their income generated from the ride-sharing services for taxation purposes by filling up Form B.
He warned that the IRB "has ways" to track income and detect tax evasion, such as by looking at a person's spending and comparing it to their projected income.
However, Sabin said, Uber and Grabcar drivers with a total income of less than RM30,000 a year will not be taxed.
He added that e-filing response is encouraging as 1.126 million people have filed their taxes online so far in March as compared to 997,238 in the same period last year, an increase of 12.9%.
Sabin was attending a hi-tea session with the media at the Seri Pacific Hotel today, where he expressed hopes of a closer working relationship between IRB and the media.
He said the increased publicity on IRB activities will educate the people on their tax responsibilities and the importance of paying their due.